Retirement involves leaving the workforce and living on a fixed income for an unknown period. You must make sure your nest egg lasts as long as possible to avoid running out of money.
Tag: 4% rule
Will Inflation Put An End To The 4 Percent Rule?
The 4% Rule states that when you retire, you withdraw 4% your first year; each year, the amount is adjusted for inflation. However, people are now living longer, steep inflation and a bear market are calling into question if the four percent rule is still valid or if it should be re-adjusted to 2%.
Is the 4% Rule Still Working?
The 4% rule has become the standard norm for retirement spending was established 28 years ago. It was in 1994 when financial adviser William Bengen created the 4% rule, a general guideline for how much to safely withdraw in retirement. It is reasonable to question whether the formula is still effective.
